The rapid decrease in industry in November
The decrease in the industrial production, which had begun in March 2008, compared to the corresponding month of the previous year, remained around 5% till October. In October the industrial production decreased 12%. In November the industrial production decreased to the lowest level of the year.
In manufacturing, the production also fell 18% in November compared to November 2007. The main reason causing the decline in the production was the insufficient market demand. There were less new orders in most of branches than in previous months. According to the information of the Estonian Institute of Economic Research, the market demand remains on a low level and the production flows along the downward trend. The decrease in the production of manufacturing was mainly influenced by the production of branches holding the largest share, such as food, wood and building materials. The largest fall — 40% — was in the production of building materials, which is directly connected with the decline in the domestic construction market. The low level in construction also affects the production of chemicals and metal products — about 30% less paints and varnishes and caulking compounds, 26% less metal roof and wall cover profiles were produced in November compared to the same period a year ago. The difficulties in the sales both in domestic and external markets affected continually wood manufacturing. The decrease in the production of food was mainly influenced by the decrease in the production of beverages, primarily caused by a higher excise tax which increased in July, and by the price increase of raw materials in the world market. Compared to November of the previous year, 42% less distilled spirits and 19% less beer was produced. In November compared to the previous year, the production decreased also in the branches of industry growing heretofore — in the manufacture of metal products, chemical products, and electrical machinery, mainly due to the decrease of export orders.
In November the production increased only in the manufacture of radio- and communication equipment. The share of exports in this branch was the largest — in November 96% of production was exported.
In November compared to November of the previous year, the production of electricity decreased 19%, the production of heat — 21%. The decrease in electricity production was caused by a partial replacement of own production with the imports of electricity.
In November compared to October, the seasonally adjusted industrial production decreased 8%.
The volume index and trend of production in manufacturing,
January 1998 – November 2008 (2000 = 100)
Change in volume index of industrial production, November 2008
(percentage)
| Economic activity | Change compared to previous month according to seasonally adjusted dataa | Change compared | |
| according to unadjusted data | according to working-day adjusted datab | ||
| TOTAL | -7.7 | -21.7 | -17.7 |
| Energy production | -3.8 | -19.7 | -19.7 |
| Mining | 1.5 | -18.6 | -14.4 |
| Manufacturing | -9.0 | -22.3 | -17.9 |
| manufacture of food products and beverages | -2.9 | -17.5 | -14.1 |
| manufacture of wood and wood products | -8.4 | -29.5 | -25.5 |
| manufacture of fabricated metal products | -6.5 | -14.1 | -7.8 |
| manufacture of electrical machinery | -9.8 | -10.9 | -3.8 |
| manufacture of building materials | -9.0 | -42.6 | -40.0 |
| manufacture of chemicals and chemical products | -22.4 | -11.1 | -6.1 |
| manufacture of furniture; manufacturing not elsewhere classified | -10.3 | -26.4 | -20.6 |
| manufacture of radio, television and communication equipment and apparatus | 1.2 | -0.4 | 4.2 |
| manufacture of textiles | -7.9 | -35.0 | -30.1 |
a In case of the seasonally adjusted volume index, the impact of the differing numbers of working days in a month and seasonally recurring factors has been eliminated. It is calculated only in comparison with the previous period.
b In case of the working-day adjusted volume index, the impact of the differing number of working days in a month has been eliminated. It is calculated only in comparison with the corresponding period of the previous year.